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Company completes sunset of legacy platforms

Orlando, Florida (November 13, 2014) – IZEA, Inc. (OTCQB: IZEA), the leader in Social Sponsorship, today announced record results for its third quarter ended September 30, 2014.

Third Quarter 2014 Financial Highlights:

  • Revenue increased 23.4% year-over-year to a record $1.93 million.
  • Bookings reached a record $2.02 million, up from $1.87 million in Q3 2013 – the highest bookings in the third quarter in the history of the company.
  • Gross profit for the quarter rose 16.2% year-over-year to $1.24 million.
  • New opportunity pipeline increased 74% year-over-year to $16.4 million. New opportunity pipeline represents the amount of new client proposals generated within the quarter.

Third Quarter Operational Highlights:

  • IZEAx aggregate network reach increased 82% to 965 million fans and followers at the end of the quarter, compared with Q2 2014.
  • IZEAx registered users increased 45% to 96,000 compared with Q2 2014.
  • 83 full time team members; added 13 net new staff in client services and 4 in engineering in Q3.
  • Eight new IZEAx partners, including Meredith, Allison Partners and SoundAmp.
  • Completed the expansion and renovation of the company’s global headquarters.

“The third quarter was transformational for IZEA. We completed the bulk of our hiring for 2014, creating the foundation for 2015. We made a significant investment in client services and engineering over the past two quarters, and are beginning to see the benefits of those resources. The increase in new opportunity pipeline has been outstanding and we have been able to reach a much wider array of potential buyers. We had our first $1.0 million+ bookings month in September, and I believe we will see more months of this caliber as our new hires gain experience and build relationships with clients,” commented Ted Murphy, IZEA’s Chairman and Chief Executive Officer.

“One of our top priorities this year was to sunset our legacy platforms and transition our sponsored social transactions to IZEAx. We are pleased to share that we have now completed that process, freeing our engineering team to focus all of our efforts on IZEA’s future. In Q3, we added 41 features to IZEAx, including support for Twitter photos, Facebook Pages and further mobile optimization.”

“In the second quarter we added client service team members to focus on capturing governmental and political dollars,” continued Murphy. “We saw our first win in this arena in Q3 and believe that there is opportunity to grow this line of business as we look ahead to the next election cycle.”

Third Quarter 2014 Results:
Revenue for the third quarter of 2014 was $1,931,671 compared to $1,565,851 for the third quarter of 2013, an increase of 23.4%. Gross profit for the quarter was $1,239,454, up from $1,066,724 during the same period in 2013, an increase of 16.2%. Operating expenses for the quarter ended September 30, 2014 were $2,320,142, compared to $1,655,727 for the same period in 2013, due to investments in sales, marketing and engineering.

Net income for the quarter was $685,370 compared to a net loss of $(975,302) during the same period last year, primarily due to a $2,250,344 gain on the change in the fair value of derivatives. Operating EBITDA was $(1,309,551) for the quarter compared to $(143,660) during the same period last year, primarily due to investments in marketing and new hires.

Basic and diluted income per common share for the quarter was $.01, compared to basic and diluted loss per common share of $(.08) for the third quarter of 2013.

Investor Conference Call:
The Company will host a conference call today at 9:00 am ET, during which IZEA management will discuss the financial results and be available to answer any questions from the investment community.

Dial-In Numbers:
Toll-Free (Domestic): 877-407-4018
International (Toll): 201-689-8471
Webcast Link: http://public.viavid.com/index.php?id=111936

Electronic replay of the conference call will be available through November 20, 2014 by dialing (877) 870-5176 and entering PIN number 13595357. The company will also post a downloadable file onto the IZEA Investor Relations portal: http://corp.izea.com/investors/

Safe Harbor Statement
http://corp.izea.com/safe-harbor-statement